💸Hashed Education💸
It's a new year and the market is going sideways. A typical day in the crypto sphere. We decided why not use this opportunity to teach you all about one of most important aspects of being a day trader.
Keep in mind that if you use a position size for your trades, RISKING only 1% of your Portfolio per trade aiming for a RISK:REWARD of 1:3, your Breakeven Win Rate is 25%...
This means that you can actually lose 75 times out of 100 trades and win only 25 without being in loss. You would break even.
If you improve your win ratio to 50 winning trades out of 100 (still aiming for 1:3 R:R) and lose same amount of trades (50), you will still double up your portfolio which will be 100% up!!!
Let's do the math (this is not a compound strategy example):
My portfolio is worth $10,000. I want to make 100 trades with R:R=1:3 so 1% RISK ($100) to win 3 times REWARD ($300).
First 50 trades are winners then the other 50 trades are losers.
👑 Portfolio = $10,000
😁 50 win trades * $300 = $15,000
😪 50 losers trades * $100 = -$5,000
🤑 $10,000+$15,000-$5000= $20,000 (My portfolio is now 100% UP and I lost 50 trades out of 100!!!)
Learning Outcome: Losing a trade is NOT the end of the world if you are following a plan with a risk management and a position sizing strategy!
@hashedplutus Baby!
https://www.publish0x.com/?a=Opnel2JbKB
